CIMA P1 Syllabus D. Dealing With Risk And Uncertainty - The Value of Perfect and Imperfect Information - Notes ^{3 / 5}

Uncertainty means we might consider getting more info

Perfect information is available when a 100% accurate prediction can be made about the future.

Imperfect information The concept of perfect information is somewhat artificial since, in the real world, such perfect certainty rarely, if ever, exists.

The approach to calculate the value of perfect and imperfect information is the same:

Expected value of the decision with (im)perfect information - Expected value without it